Rogers Communications Inc.

Rogers reported Q2 2026 consolidated service revenue of CAD 5.1 billion, up 8% year over year, and adjusted EBITDA of CAD 2.4 billion, up 3%. Free cash flow was just shy of CAD 1 billion, up 6%, while capital expenditures declined to CAD 0.7 billion, down 16%, and capital intensity improved 350 basis points to 12.4%. Wireless service revenue was stable year over year, wireless adjusted EBITDA rose 1%, and the company added 40,000 subscribers, including 22,000 postpaid customers; mobile phone ARPU was CAD 54.25, down 2%, and postpaid churn was 0.94%. Cable service revenue and adjusted EBITDA each grew 1%, with 17,000 internet net additions; management said cable’s organic growth was about 2% after adjusting for the hosted data center sale. Rogers Sports & Media revenue was CAD 1.2 billion, up 53%, with about 13% organic growth excluding MLSE and adjusted EBITDA of CAD 69 million, up roughly 8.5x from CAD 8 million a year ago. Management said it reaffirmed 2026 outlook ranges for total service revenue growth, adjusted EBITDA growth, CapEx and free cash flow, and reiterated CapEx guidance of CAD 2.5 billion-CAD 2.7 billion.

Tony Staffieri framed the quarter as evidence that Rogers is executing well across telecom and sports/media while staying disciplined on capital. He emphasized a shift away from short-term price discounting toward value-based plans, stronger churn performance, and a back-to-school offer set that leans on perks and partnerships rather than broad discounting. On sports, he said full ownership of MLSE would strengthen Rogers’ portfolio and create a unique value proposition tied to connectivity, content, and customer rewards.

Glenn Brandt highlighted the hard numbers: 8% consolidated service revenue growth, 3% adjusted EBITDA growth, 57,000 combined net new mobile phone and retail internet customers, and wireless/cable adjusted EBITDA margins of 66% and 58% respectively. He pointed to CAD 69 million of Sports & Media adjusted EBITDA, CAD 1 billion of free cash flow, capital intensity of 12.4%, liquidity of over CAD 6 billion, and leverage of 3.8x, down from 4x at December 31, 2025. He also said Rogers recorded a CAD 1 billion non-cash loss tied to the MLSE put liability remeasurement, and reiterated that the company expects the lower CAD 2.5 billion-CAD 2.7 billion CapEx range to be sustained for several quarters to come.

Analysts focused on wireless revenue growth, ARPU pressure, activation/cancellation fees, and whether Rogers could sustain lower CapEx and further cut OpEx. Management said wireless market growth remains around 2% at the low end of prior expectations, ARPU is the main variable, and Rogers is leaning on value plans, base management, hardware discounting, and added features to offset fee pressure. On CapEx, management said the lower spend reflects both efficiency actions and the decision to exit some lower-priority projects, and described the new CapEx range as a sustainable run-rate beyond 2026. On MLSE monetization, management said the plan is to sell non-voting minority equity in the combined holding company, with a target to close the acquisition in Q4 and pursue a minority stake sale in the first half of 2027, using proceeds to pay down debt.